Several markets recorded outsized multifamily completions during the most recent 12-month period. While none of the top supply markets are unexpected, there were some notable trend changes.

The chart provides the relative levels of new construction between markets, but it does not show how this impacts each market. We get a much clearer picture when we compare rental trends with these top supply markets using the most recent 12 months of Topline rents.

Denver and Seattle both continue to see very strong rental increases at 9.7 percent and 7.2 percent, respectively. Both markets are also behind the curve for satisfying multifamily demand. Urban Atlanta and North Dallas, at 6.8 percent and 6.0 percent rental increases, are also positioned very well to absorb additional supply.

The Carolina Triangle and Charlotte markets, with growth of 4.6 percent and 4.5 percent, respectively, continue to show strong returns, even with a significant number of units entering the market. Washington, D.C., and Northern Virginia have both been considered overbuilt for some time, which is supported by the below trend increases of 1.6 percent and 1.4 percent, respectively.

West Houston and Austin have both experienced a long run in multifamily construction: however, the most recent rental rate increases of 3.9 percent and 3.3 percent may signal an end to the development boom for both markets. With nearly 30,000 units under construction in West Houston, and nearly 17,000 currently underway in Austin, it will be interesting to see how these markets are able to accommodate these new units.

Would you believe there is one market with among the least amount of new construction in the nation and also in the top 10 for rental rate increases? If you said yes, you would be wrong – there are three! And two more are in the top 15 in rent growth. Check back soon for the next article—Top Five Underserved Markets for Multifamily Supply.